Alembic hits roof on bonus issue declaration

DALAL STREET SPIKES

Alembic hit the 20 per cent circuit breaker at Rs 346.70 soon after the company made announcement about a bonus issue.

The scrip was extremely volatile - finally closing at Rs 337.70 with volumes of the order of over 40 thousand at the BSE. The company said that the board would be meeting on February 12 in order to discuss this issue.

According to market sources, the stock which has been losing ground for almost the last two months, depreciating by around 30 per cent on the back of discouraging quarterly results, was in the limelight on the company planning a bonus issue.

An analyst said, the company is facing competition in Penicillin - G, while the decrease in price of Erythromycin has also impacted the bottom line of the company. Only, the cough syrup"" Glycodin, its better known product, is doing well but is facing stiff competition.